6 October 2020 AirPharma Welcome 1
AirPharma Webinar Host: Andrea GRUBER Head, Special Cargo IATA Industry’s readiness and preparedness to manage globally a temperature-controlled supply chain - How to meet the upcoming demand in vaccines, health, and humanitarian supplies
Microphones have been muted Please submit your questions through the Question box and send to Everyone The webinar is being recorded and will be made available afterwards, including the PPT slides.
Participants are cautioned that any discussion regarding matters such as ▪ fares, charges, division or sharing of traffic or revenues, or concerning any other competitively sensitive topics outside the scope of the agenda is strictly prohibited. As a result, questions pertaining to individual policies or commercial ▪ decisions and/or being subject to bilateral commercial discussions between airlines and their suppliers or customers will not be answered.
Agenda Welcome and Introduction ▪ State of the Industry ▪ Manufacturers Perspective & ▪ Expectations Challenges in the health and ▪ humanitarian supply chain Panel Discussion ▪ Questions & Answers ▪ Wrap up ▪ Biographies are available on the IATA Website
State of the Industry Glyn HUGHES Global Head of Cargo IATA
State of the Air Cargo Industry Glyn Hughes Global Head, Cargo
8 7 October 2020
9 7 October 2020
10 7 October 2020
11 7 October 2020
The next challenge… vaccinating the world Providing a single dose of the vaccine to 7.8 billion people would fill 8,000 747 cargo aircraft Collaboration among all stakeholders is the key ingredient !!!
Manufacturer’s Perspective & Expectations Luis ROMAN Global Vice President, Deliver The Janssen Pharmaceutical Companies of J&J
IATA Discussion Perspective and Expectations Luis Roman Global Vice President Deliver - Janssen
Johnson & Johnson 80% 60+ Cargo on countries passenger import/export aircrafts ~1,400 ~800 13 100K Global Transport Lanes Inter-regional Air Lanes Annual global logistics shipments providers 15
COVID Reflections Crisis “Onset” and Some Continuing Challenges “Overnight” cancellations from airlines impacted cargo in-transit – bonded shipments stuck at transship locations Rapid response approach was required to manage freight with a spiral effect of airline cancellations, port and customs closures and J&J facility closures Time to establish alternate cargo solutions resulted in major delays in some key corridors “Force Majeure” declarations by airfreight forwarders, although contested and not accepted by J&J, were presented as the basis for forwarders’ indicating inability to ship at contract price, resulting in introduction of uncontrolled price increases Freight prioritization was performed based on airline-freight forwarder-shipper relationships – No standardized approach Industry shortage of specialized handling equipment Shipments of life savings drugs to remote countries Complex documentation and processing associated with PPE donations and shipments were resource intensive especially for the dangerous goods shipments 16
COVID Reflections Industry Advancements to Address Challenges based on Lessons Learned Continued availability of “freighters” and “passenger freighters” until passenger aircraft capacity stabilizes Visibility into latest market conditions and trends – routes, solutions, capacity and delay information available to all shippers Pricing regulations and controls to prevent irrational increases Standardized approach to validating shippers for freight prioritization – life savings drugs, PPE donations to humanitarian agencies etc. Peer groups for shippers to share best practices and efficiencies to the extent permitted under relevant laws and regulations Tackle vaccine capacity requirements innovatively – Combined charters, leverage capacity based on flows, fair pricing For destinations that require new and alternate routings, establishing industry wide security considerations 17
Call to Action Leverage the lessons learned from the crisis and tackle the new challenges associated with vaccine requirements and delivery as a combined humanitarian venture across the globe “HOW” “WHAT” • Capacity • Develop combined solutions and leverage capacity where feasible to meet the global demands for vaccine shipments – Combined Charters, Flow • Temperature Control Solutions Optimization based on origin and destination • Integrated network solutions • Review temperature control solutions for vaccines as an industry wide need Peer Groups versus a peer to peer competition to the extent permitted under relevant laws and regulations • Cost & Reliability • Explore opportunities for a unified consortium of shippers, providers and • Visibility IATA to maintain governance and controls for fair shipping costs and reliable, • Security secure and visible shipping process from origin to destination Unified Controls
Q & A
Manufacturer’s Perspective & Expectations Victor SOH Director, Global Distribution & Logistics Strategy Lead MSD
COVID-19 VACCINES LOGISTICS CHALLENGES Sep 2020 Victor Soh
COVID-19 VACCINES Logistics Challenges 1. Global Transportation: Competing for limited and volatile air and road freight capacity for cold chain products 2. Thermal Protection Systems: A range of thermal protection systems is needed to cater for all temperature requirements. 3. Customs & Regulation: Vaccines have to be delivered to vaccination sites as rapidly as possible to conserve shelf life. 4. Allocation: Central agencies & NGO’s have to deal with vaccine variations resulting in divergent distribution requirements 5. Distribution: Time pressure to expand existing and build new infrastructures, equipment and handling capabilities to cater for all • temperature requirements at an unprecedented scale, without certainty of when, what and how much vaccines will be approved and available. 6. Point of Use: Limited short-term storage capacity to cater for all temperature requirements, especially lacking for ultra frozen. 22
Conclusion 1. Distribution system must be scalable and sustainable and does not disrupt existing cold chains. 2. Fast track and simplify customs and regulations to enable ease of flow. 3. Collaborate to jumpstart the development of multi-client storage and distribution systems that can cater to vaccines from 2-8 ° C to ultra low temp. 4. Partnerships to operate standard processes, enable economy of scale and risk sharing. 23
COVID-19 VACCINES LOGISTICS CHALLENGES Q & A Sep 2020 Victor Soh
Challenges in the health and humanitarian supply chain Andrew JACKSON Head of External Supply Chain Services World Food Programme (WFP)
Challenges in the Health and Humanitarian Supply Chain AirPharma webinar 6 October 2020
A key player: WFP Aviation Service In sudden onset emergencies, WFP Aviation can respond and position an aircraft between 48 to 72 hours thanks to a pool of aircraft available in different parts of the world to ensure a swift response . 2019 highlights WFP Aviation UNHAS • 35,100 mt of cargo • 404,000 passengers • 90 aircraft • 310 destinations • 620 airdrops • 800 organizations On any given day, WFP manages 100 aircraft
Common Services for the COVID-19 Response, 2020 WFP is leading a global supply chain response with unprecedented scale to support the humanitarian and health community. Cargo 169 countries reached • 70,700 m 3 transported • 61 organizations supported • Passengers 67 destinations • 23,600 passengers • 1,323 flights • Over 360 user organizations • Medevacs 45 completed by WFP , 22 • carried out by the wider system
Lessons learned: how can we achieve success together? Good corporate practice: “Nobody is safe until Humanitarian Responsibility everybody is safe” Affordable freight space for life-saving commodities Affordability (temperature sensitive medicines, nutritious foods and health products) Flexible, stand-by agreements for humanitarian partners to access aircraft over periods of time to Flexibility direct supplies in an agile manner, when and where they are most needed. Sharing best practice and tech transfer, cold chain Corporate Social management, hub management, planning and Responsibility contingency Arranging the end-to-end transportation service Effective Coordination requirements would involve coordination between the UN and freight forwarders.
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